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Foreign investors to conduct profit taking in BOND MARKET

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JAKARTA: Foreign investors might continue to move around government bonds market, ranging IDR2 trillion-IDR3 trillion amid the projected market fluctuation in the next few months.
 
According to Directorate General of Debt management, net buy by foreign investor noted at IDR3.1 trillion on June 25 to IDR226.31 trillion from IDR223.21 trillion on June 8.

The foreign investors started to conduct net sell on June 26 with an accumulation of IDR1.89 trillion in the end of June thus ownership down to IDR224.42 trillion.
 
However, in early July to July 3, net buy by foreigners recorded at IDR2,48 trillion to IDR226,9 billion from late last month position at IDR224, 42 trillion.

Analyst Ariawan from PT Mega Capital Indonesia viewed foreign investors will continue to conduct profit taking. “It is seen the minimum foreign investor ownership growth in the past few weeks,” he said on Wednesday (7/4/2012).

According to him, short trading strategy by foreigner following the high volatility due to the global crisis.

Furthermore, Indonesia Islamic bonds issuance is projected to miss investor demands who eyeing high return following the narrowing yield.
 
Yield of rupiah-denominated Islamic bonds that will due in August 2018 down 4.12% from last year position at 6.2%. (tw)

 

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